(Yicai) May 13 -- The substantial progress made in the China-US trade talks has prompted positive reactions from listed Chinese companies in various sectors, including those in toys, textiles, apparel, and pharmaceuticals.

Firms involved in home appliances, shipping, and auto parts welcomed early signs of a reversal in tariff hikes implemented last month, as many saw their share prices rise.

China and the United States yesterday agreed to cancel 91 percent of tariffs on each other’s goods and suspend an additional 24 percent for 90 days, resulting in a combined reduction of 115 percentage points. This means that Chinese goods exported to the US will now face import duties of 30 percent instead of 145 percent. The revised tariffs will take effect by tomorrow.

Shares of Kutesmart [SHE: 300840] surged by the daily limit of 20 percent today after the made-to-measure retailer said that improved trade relations would benefit its overseas business. The US is a key international market for Kutesmart, said the owner of clothing brand Red Collar.

Streamax Technology [SHE: 002970] closed up 4.1 percent. The producer of dash cams and advanced driver-assistance systems for commercial vehicles said the improved trade outlook should support its business environment. Since April, Streamax has weathered tariff-related pressures without losing any customers or orders, the firm noted.

Toymaker Goldlok Holdings [SHE: 002348] said that reduced US tariffs would positively impact its domestic operations. Last year, the manufacturer of electric trains and smart writing boards earned CNY59.9 million (USD8.4 million) from US exports, accounting for nearly one-fifth of its total revenue.

Sinotherapeutics [SHA: 688247], a developer of treatments for metabolic and oncology diseases, reported no significant changes in US sales during the first quarter despite tariff uncertainty. The company has also expanded into other international markets in recent years and achieved key sales approvals.

Xinbao Electrical Appliances [SHE: 002705] said it will continue monitoring relevant policy changes and respond proactively. While some emerging markets are expanding quickly, they still represent a small portion of total sales. The company will continue exploring growth in emerging markets such as Europe and Southeast Asia, alongside strengthening its domestic presence.

State-owned maritime transportation firm China Merchants Energy Shipping [SHA: 601872] said the broader shipping sector is likely to benefit from progress in trade negotiations.

The chief strategist at Sinolink Securities noted that the 90-day tariff suspension would alleviate pressure on exporters and could trigger a short-term surge in “export-as-fast-as-possible” activity.

Meanwhile, the chief strategist at Zhongtai Securities described the agreement as a major easing of trade frictions, with both sides suspending new tariffs, maintaining lower existing rates, and setting up a follow-up dialogue mechanism.

Editor: Emmi Laine